Dow theory

  • : The dow theory helps using the market trends and not the fundamentals of a company.If there is high bottom and high top the price is in bullish trend provided there is high volume of trade and in bearish trend if there low bottom and low top.
  • : Line charts are used when looking at 2 years of data and candle stick when there is less data. Minimum 2years data is being used to look at trend using dow jones theory.
  • : The dow theory helps using the market trends and not the fundamentals of a company.If there is high bottom and high top the price is in bullish trend provided there is high volume of trade and in bearish trend if there low bottom and low top.
  • : The dow theory predicts the direction of the stock only for swing trading or longer investments and does take predict the shorter movements or intraday trading. Its been practiced over 100 years and still reliable at deriving trends.
  • : Take a long position if the there is high bottom and high top and if volume is high and short if there is low top and low bottom. The trend remains as long as it encounters low top and lower bottom with high volume.
  • : When the demand is greater than support the prices tend to go up this is called support whereas when the supply is greater than the demand the priced tend to go down which is called resistance,
  • : How long can the trend last in dow theory?
0 Comments

Leave a reply

CONTACT US

We're not around right now. But you can send us an email and we'll get back to you, asap.

Sending

©2022 | Rights Reserved | EQSIS | Terms and ConditionsPrivacy Policy

Log in with your credentials

Forgot your details?